TVA is cutting its workforce by about 2,000 jobs this year as part of its ongoing effort to trim $500 million a year in operating expenses, officials said today.
TVA President Bill Johnson said about 1,000 jobs, or half of those being cut by TVA this year, came from not filling staff vacancies in the past year. Most of the employees leaving TVA this year are doing so voluntarily through retirement or resignations.
"We had a voluntary reduction in force that was well received and garnered about 750 persons and then we had some involuntarily reductions as well," Johnson said. "So at this point, I would say there are probably in the order of 2,000 fewer (employees), and there are some contractor reductions also."
TVA had 12,612 full-time employees when its started the current fiscal year last October.
TVA said it has cut operating expenses in fiscal 2014 by $182 million, or 6.8 percent, toward the utility's goal of trimming $500 million in operating expenses by fiscal 2015.
"A big part of our cost reduction is head count, and a big part is just doing what we do more efficiently," Johnson said. "We're slightly ahead of where we need to be to achieve our $500 million reduction."
Despite an $81 million net loss in the spring quarter, TVA said today its net income rose to $147 million in the first nine months of the current fiscal year. In the same time a year ago, TVA lost $203 million.
"The underlying trend of low and positive growth in power demand, better cost management and operational improvement is encouraging," Johnson said.
"The April to June period is typically a transitional period where we see milder weather and lower demand for energy and this quarter followed that trend," he added. "We are well on our way toward achieving our multi-year goal of reducing operating and maintenance costs by a sustainable $500 million. Once we make that target, we will continue to look for ways to eliminate unnecessary costs and to live within our means."
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